2023 Korea Investor Intentions Survey

While Korean investors continue to display stronger intentions to buy than sell, the proportion of Korean respondents intending to purchase more real estate this year significantly declined from last year.

Borrowing costs will weigh heavily on investment activity in 2023. CBRE forecasts Korea commercial real estate investment volume in H1 2023 to fall to the lowest level in the past five years.

Most Korean investors named shifts in credit availability and loan terms as well as the mismatch in pricing expectations as the top obstacles to investment this year.

As loan interest rates are higher than returns on real estate, interest rate-seeking activity through real estate debt investment will become more prominent in the coming months.

Offices remain the most preferred sector among Korean investors, while preference for logistics has decreased. The gap in preference between the two sectors widened compared to last year.

More Korean investors expect to see price discounts across sectors compared to last year. However, the degree of price adjustment will depend on asset location and specifications.

Although the proportion of Korean investors who plan to adopt ESG criteria in all investment decisions was smaller than that for Asia Pacific, they expect to pay more for ESG-certified assets.